Way to sell "gas guzzlers" better?

mr00jimbo
06-17-2008, 04:38 PM
Just use part of the profit to discount the price of gasoline for the purchaser.

Say somebody in an SUV drives 15,000 miles at 4$ a gallon. Say they get 15 miles per gallon.

That's $4000 a year on gas!

At 3$/gallon that's $3000 a year.
At 2$ a gallon that's $2000 a year.

GM could easily foot that bill for the first 4 years to say offer gas at 2 bucks a gallon and take a 4-5k loss on it, could they not?

jg95z28
06-17-2008, 04:40 PM
Isn't that basically what Chrysler is doing?

Threxx
06-17-2008, 04:41 PM
That's what Chrysler has been doing, though they promise you 3 bucks a gallon for something like the first 24 or 36k miles of driving... I forget.

It's really just a clever way to replace a cash back rebate... it appeals to more people who are worried about gas prices getting even higher.

jg95z28
06-17-2008, 04:57 PM
That's what Chrysler has been doing, though they promise you 3 bucks a gallon for something like the first 24 or 36k miles of driving... I forget.

Less. 12k a year for three years.

http://www.dodge.com/en/refuel/

Eric77TA
06-17-2008, 05:16 PM
The "Let's Refuel America" take rate has been very low for Chrysler - like 5 to 10 percent. Traditional incentives and cash back on those same vehicles typically add up to more savings.

flowmotion
06-17-2008, 06:25 PM
Consumer Reports ripped on the Chrysler program both for being a poor deal compared to traditional incentives, and also relative to the more fuel-efficient competition. Of course if gas prices go to $5 maybe it would be worth it.

http://blogs.consumerreports.org/cars/2008/05/chryslergascard.html

mr00jimbo
06-17-2008, 06:27 PM
Yes but it doesn't matter what ads up, people don't care they want to fill up for less.
I know some people would waste 3 bucks in gas to drive to THEIR ATM machine in order to save a buck fifty on a surcharge...

I've seen the Chrysler commercials for it. But I don't think it's known as widespread as it should be!

Perhaps they would be better off selling this as a lease? Or GM can just buy its own oilfield and promise 3/gallon gas for 10 years? :D

mr00jimbo
06-17-2008, 06:29 PM
Consumer Reports ripped on the Chrysler program both for being a poor deal compared to traditional incentives, and also relative to the more fuel-efficient competition. Of course if gas prices go to $5 maybe it would be worth it.

http://blogs.consumerreports.org/cars/2008/05/chryslergascard.html

Gas prices are 5.63 per gallon where I am.

flowmotion
06-17-2008, 06:34 PM
Gas prices are 5.63 per gallon where I am.
And is the Chrysler promotion $3/gal in America Jr? Because if not, obviously the calculations are different.